Similar stocks are currently returning 9 what is the most


Long Point Corp is launching a new product that analysts expect will propel its growth to 18% for about a year. After that everyone expects the firm to return to a more normal 5% growth rate indefinitely. Long Point recently paid an annual dividend of 3.50. Similar stocks are currently returning 9%. What is the most an investor should be willing to pay for a share of this company?

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Financial Management: Similar stocks are currently returning 9 what is the most
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